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Articles tagged with: hardware issues

In an open letter to consumer and the credit card industry, VeriFone claims that Square, a startup that makes credit card readers for smart phones, is plagued by a “serious security flaw” that puts users’ data at risk.

According to VeriFone, the problem is not with the application but rather with the dongle that connects to the devices. This dongle reads credit card information off the magnetic strip and transfers it to the device unencrypted in clear text, allowing anyone to write a bogus skimming application to quickly collect all information from credit cards. This collected information could then be used to make purchases with your credit card via the web or through various merchants across the world.